business

Costco (COST) shares fall as inflation takes its toll


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Costco (NASDAQ:COST) the stock slips on Friday after the release of the company’s earnings report for its fourth fiscal quarter 2022.

This earnings report begins with diluted earnings per share of $4.20 for the quarter. That comes above the $4.17 per share that Wall Street expected. It’s also an improvement from the $3.76 per share reported in the same period a year earlier.

To go along with that, Costco reported revenue of $72.09 billion for the fiscal fourth quarter. Again, that’s better than the $72 billion in revenue analysts were looking for in the quarter. It’s also a 15.2% year-over-year increase from $61.44 billion.

Earnings Data Pulls COST Stock Down

While all of the above is good news, there is one more thing that is dragging COST stock down today. The company’s profit margins for the quarter fell 10.18%. This comes as inflation begins to weigh on the retailer.

Costco CFO Richard Galanti said the following on a conference call, according to LaRue.com.

“In terms of membership fees and a possible increase, there are no specific plans regarding a fee increase at this time. We are pleased with the growth in our sales and membership households over the past few quarters and with member loyalty as evidenced by the increase in member renewal rates.

COST stock is down 1.6% on the eve of market Friday morning.

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As of the date of publication, William White had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

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